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Land Development and Pigouvian Taxes: The Case of Peatland

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  • Renan U. Goetz

Abstract

In this paper the determination of an optimal Pigouvian tax for a competitive firm when a negative production externality is present concurrent with the development of land for production purposes is analyzed within a dynamic framework. Conditions are established for a convex social net return function where a Pigouvian tax is not required or where the imposition of a Pigouvian tax leads to the decision not to develop the land at all. In the case of a concave social net return function the Pigouvian tax is either a linear or a nonlinear tax on the private net returns. Copyright 1997, Oxford University Press.

Suggested Citation

  • Renan U. Goetz, 1997. "Land Development and Pigouvian Taxes: The Case of Peatland," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 227-234.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:1:p:227-234
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    File URL: http://hdl.handle.net/10.2307/1243956
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    Cited by:

    1. E. C. Pasour, Jr., 2004. "Agricultural Economists and the State," Econ Journal Watch, Econ Journal Watch, vol. 1(1), pages 106-133, April.

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